Shareholders in Aim-listed bathroom group Longmead have seen their investment disappear down the drain.
The family controlled company, whose business making loo roll holders and towel rails has been flushed away by the dip in the economy, warned in July that trading was tough and its shares were suspended on September 3 at 7p.
Now its directors - who owned around 53% of the business - have pulled the plug and appointed PricewaterhouseCoopers as administrators.
"The company is a victim of the current economic downturn," said PWC's Ross Connock. "It is heavily exposed to the home improvement and construction market. The directors decided it could not go on trading without further funding, which was not available."
Established in 1986 Longmead, based in Axminster, Devon, employed 25 people but PWC has already made 14 of these redundant since its appointment on Wednesday.
Longmead collapsed with debts of £800,000 owed to HSBC, with other creditors in for around £500,000. At its 7p suspension price the company was valued at just £390,000.
PWC said the company was continuing to trade and it hoped to sell it as a going concern. "It's early days but we have a list of possible buyers to contact," said Connock.
